Miami July 2022 Home Sales Outperform Pre-Pandemic Totals

Although it may feel like the world is coming to an end, data shows that Miami home sales are outperforming totals from pre-pandemic levels. Experts believe that this may be due, in part, to increased interest from foreign buyers as well as a renewed sense of optimism among domestic buyers. Whatever the reason, now may be a good time to consider selling your home in Miami. Contact me today for more information!

According to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system, total house sales in Miami-Dade County increased in July 2022 compared to their pre-pandemic levels while single-family home inventories increased for a third straight month.

"The market is moving to be more in line with historical norms after two and a half years of record-breaking Miami real estate sales," MIAMI Chairman of the Board Fernando Arencibia Jr. The 10-year Treasury bill's stability below 2.9% over the past month indicates that mortgage interest rate volatility has subsided. We anticipate an increase in inventory to enter the market, and demand for Miami real estate is as strong as ever.

Home Sales In July 2022 Outperformed Pre-epidemic Levels

Sales were down year over year in July 2022 compared to a record July 2021. (2,375 vs. 3,632). Miami had its best-ever July in 2021, and July sales ranked fifth all time.

Although Miami averaged 2,325 total home sales in the month of July from 2016 to 2019, July 2022 sales of 2,375 surpassed Miami's pre-pandemic July totals.

The level of demand for Miami real estate is demonstrated by the fact that it outperformed its pre-pandemic sales total despite rising rates (from 3% to 6% this year). Major corporations like Citadel, a hedge fund and securities firm, moving to South Florida, international buyers returning, changing demographics with a rise in senior and millennial homebuyers, a high proportion of the workforce working remotely, rising rental prices, and other factors continue to fuel local demand.

The Miami Mega Region was named the top U.S. metro area where homebuyers desire to migrate in a recent Redfin research.

Foreign house buyers are becoming more prevalent in South Florida as a result of rising global immunization rates and insecure political environments worldwide.

When foreigners with vaccinations were permitted to travel to the United States once more in November 2021, South Florida, the country's most popular location for foreign buyers, saw an increase in international investment. Miami is a world-class global metropolis with better real estate costs than other comparable global cities, which is one of several factors that attracts international purchasers. Due to our extraordinary diversity, inclusiveness of all cultures, and plenty of amenities, foreign purchasers feel at home.

Due to a lack of inventory and rising mortgage rates, single-family house sales fell by 27.2% year over year, from 1,373 in July 2021—a record-breaking month—to 999 in July 2022. Due to a dearth of available inventory and rising mortgage rates, Miami existing condo sales fell 39.1% year over year from 2,259, a record-breaking July 2021, to 1,376 in July 2022.

Miami sales soared to a new high in July 2021 as a result of the pandemic-driven demand, more supply (especially in condos), and 3% mortgage rates.

When contracts were created in May and June, higher rates of 5–6% and lower inventory had an effect on Miami sales in July 2022.

Rising mortgage rates have an impact on housing. The last time mortgage rates reached 5% was in 2018. Miami's total housing sales in July 2022 were 1.9% higher than in July 2018. (2,375 vs. 2,329).

While it is still too early to tell if the increase in inventory will lead to an overall stabilization of prices, it is a good sign for Miami-Dade County homeowners and buyers. If you are thinking of buying or selling a home in Miami-Dade County, now may be a good time to do so. For more information on the current market conditions in South Florida, please contact me. I would be happy to answer any questions that you have.

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